SWOT Analysis and Service Marketing Challenges for British Airways
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Added on 2023/06/12
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This report discusses the SWOT analysis of British Airways, key service marketing challenges for the next 3 years, and recommendations to overcome these challenges. It also evaluates threats through theoretical principles of services marketing.
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TABLE OF CONTENTS INTRODUCTION...........................................................................................................................3 MAIN BODY...................................................................................................................................3 The strengths, weaknesses, opportunities, and threats (SWOT) facing the British Airways-.....3 Key service marketing challenges for the next 3 years of the company-....................................4 The threats through the lens of theoretical principles of services marketing and provide recommendations to overcome challenges-.................................................................................5 CONCLUSION................................................................................................................................6 REFERENCES................................................................................................................................1
INTRODUCTION Marketing is the action or the business of selling and promoting the products and services which includes the market research as well as the advertising. This is process is very important for every business as it helps them to reach the products and services to their customers strategically. It also helps the customers to know the products and services and the position of the company by the quality and innovation of the products. British Airways is the aviation sector company and it is the flag carrier airline of the UK. The company has headquartered in the London, England. This airline is considered as the second largest UK based carrier (O’Neill, 2018).This report will discuss the SWOT analysis of the British airways and the key services challenges for the next three years. Further, it will also discuss the threats through the theoretical principles of the services and providing the recommendations to overcome these challenges. MAIN BODY The strengths, weaknesses, opportunities, and threats (SWOT) facingthe British Airways- The swot analysis of the British Airways- Strengths-This is the internal factor of the company which helps the company to have he competitive advantage in the market and helps in achieving the position in the market. The biggest strength of the British Airways company is that this company is putting lot of focus and efforts for becoming the sustainable brand. They are putting money for the expansion of the network as well as adopting the advanced technology very quickly.This company ensures about the utmost safety for the passengers which helps them to avoid the incidents and unfortunate accidents in the airline. The company has the good brand name which helps them to attract the large number of the passengers by travelling through these airlines as well as it has the large international routes all over the world. Weaknesses-These are the internal factors which hinders the company's success. The biggest weakness of the British Airways is the issues with the HR. This department pays the vital role achieving the goals as well as managing the resources in the company as well. The revenue of this company is heavily and largely depended on the local market and because of this the company gets much affected by the Brexit and has also has the large impact by the Covid 19 pandemic. Almost 50% of the revenue is generated from the domestic market for the company.
Opportunities-These are the external factors which will help them to achieve the leading position in the market. British Airways has expanded its services for increasing the revenue growth of the company (Endrizalová and et.al., 2018).They can use the premium services for the passengers that will attract the more number of customers and this will directly lead to increase in the revenue of the company. The company can go for the expansion to the international markets because it is very high time for the aviation industries to expand its flights to the international routes. And along with this, the another most important factor that the company must adopt the advance technology as this will help the British Airways to grow more by utilizing the technology such as the artificial intelligence, cloud based computing and many more. Threats-These are the external factors which has the major impact on the working of the businesses. The British Airways company has also faced issues by the Covid 19 pandemic because this company is depended on the local market which cause the large impact on the revenues of the company. The aviation sector is the highly competitive market and this also has the impact on the airline company. The another important which has impacted the company very largely is the Brexit because it causes the lot of economic uncertainty in the country which has affected the British Airways as well. British Airways face the high level of the regulatory factors from the authority as well as from the aviation industry as well and this has the impact on the working of the company because they have to follow the things. Key service marketing challenges for the next 3 years of the company- The British Airways company will also face some service marketing challenges for the next years are such as- Services are Intangible-The services are not physical like the products. Marketing of the services is very crucial for the aviation industry because till they will not experience this, the customers ate not satisfies and gets convenience about this. In the next years, the customers will become more prone of getting the effective and quality services for what they pay (Wittmer and Bieger, 2021).IT will become more difficult for the British Airways to convince that the company is offering the services is worth of what they are paying for it. Quality is variable-The services are performed whenever required, so they are very difficult to control. The environment may happen that it is not the same every time so at this time there other variable factors may also involve. The quality of the service is depended on the moment by the
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both provider and by the customers as well. The customers always wants them to must receive the quality service from the company. British Airways company is the aviation sector company and it is very important for the company to understand the issues they are facing while providing them the good quality services because the quality of the service provided by the staff depends on the motivation given to the company as well as on their knowledge and experience. Services cannot be stored-The key challenge faced while marketing the services is that cannot be stored so it becomes difficult for the customers to show the services that the company will provide. The next years, customers will be very smart, and they will ask for the companies to provide them all the services which can be provided by the given money. British Airways company will also face this challenge in the future because it is very important aspect which must be taken into consideration while the passengers arrives at the airports as well as in the airlines. The threatsthroughthe lensof theoreticalprinciplesof servicesmarketingand provide recommendations to overcome challenges- The threats of the company can be evaluated by the Pestle analysis such as- Political Factors-The political factors also has the impact on the Working of the business and this will also impact the British airways as well. The frequent strikes of the employee unions in the UK affects the brand image of the company and the other factors like Post Brexit also has the impact on the British Airways. This has the threat on this company and the company must take measures to avoid these problems. Economic Factors-The Heathrow airport has decided to expand its third runway which will high impact on the operational costs as well as on increasing the costs. The low fuel prices has increased the profitability of the company in the short term (Noor and et.al., 2020).This has the high impact on the service marketing of the British Airways company. Technological Factors-This is the most important factor which has the high impact on the businesses and also on the aviation industry. British Airways has to adopt the technology in their airlines because this will help them in having the competitive advantage in this industry (Hole, Pawar and Bhaskar, 2018).If they will invest in the technology this will improve the customer experience.
Environmental Factors- The airlines have the impact of the rules and regulations, made because they have much impact on the environment. They produce much carbon pollution so it impacts their business. Recommendations- Adopting the Technology-British Airways must adopt the advanced technology as this will help them to have he competitive advantage, and they will lead in this industry. This is the most important action which this company must take as this will provide in effectively serving the services to the customers as well as in the marketing of the services provided by the company. Collecting the Feedbacks-The best way to help the company in increasing the number of passengers and increasing the revenue can be done by sharing the experience of the customers with them so that the marketing of the services could be done effectively. This is the best methods which will help the company to understand the improvements if required. Collecting the feedbacks from the customers will help the staff top understand how effectively they are serving the customers and what all things can be added more in the services by evaluating the feedbacks from the customers. Marketing Mix-The British Airways must consider all the 7 P's of the marketing mix such as Price that it set the better deals for the customers, Promotion, Place that is deciding the target market of the company, positioning that is the way to create the position of the company in the minds of the people (Wahyono and Nurjanah, 2020).Physical Evidence is the best way of marketing the services as by providing the evidence will help the customers to understand the services provided by the company as well as telling them the process that how these services are provided to the customers. CONCLUSION This report will discuss the Swot analysis of the company for understanding the strengths and weaknesses of the company. Along with this, it will also discuss the key challenges which will be faced by the company of the service marketing in the future. Further, it will also discuss the factors which are the threats for the company with the recommendations.
REFERENCES Books and journals Endrizalováandet.al.,2018.BrandDesignasthePartoftheAirlinesMarketing Strategy.MARKETING,1009, p.6Ps. Hole,Y.,Pawar,S.andBhaskar,M.P.,2018.Servicemarketingandquality strategies.Periodicals of engineering and natural sciences,6(1), pp.182-196. Noor and et.al., 2020. The model of experiental marketing, service quality, and customer loyalty.Journal of Talent Development and Excellence,12(1), pp.192-199.Noor, Z.Z., Noor, Z.Z., SH, S., MH, M. and Kn, M., 2020. The model of experiental marketing, servicequality,andcustomerloyalty.JournalofTalentDevelopmentand Excellence,12(1), pp.192-199. O’Neill, B., 2018. Developing future leaders at British Airways. InThe Photofit Manager(pp. 72-89). Routledge. Wahyono,W.andNurjanah,U.,2020.BuildingCustomerLoyaltythroughStrategy ExperientialMarketing,ServiceQuality,andCustomerSatisfaction.Management Analysis Journal,9(2), pp.122-131. Wittmer, A. and Bieger, T., 2021. Demand and Marketing in Aviation. InAviation Systems(pp. 251-282). Springer, Cham. 1
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